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Human capital effects of marriage
payments

Elevator pitch

Payments at the time of marriage, which are
ubiquitous in developing countries, can be substantial enough to impoverish
parents. Brideprice and dowry have both been linked to domestic violence
against women, and inflation in these payments has prompted legislation
against them in several jurisdictions. Marriage payments are often a
substitute for investment in female human capital, so from a welfare and
policy perspective, they should be prohibited. This highlights the
importance of promoting direct economic returns over legal and customary
rights.

Key findings

Pros

Dowry can lead to higher bargaining
power for women.

Dowry can lead to higher male human
capital investment.

Brideprices value the productivity of
females.

Dowry can increase female rights to
inheritance.

Marriage payments transfer wealth to
the next generation.

Cons

Dowry and brideprice are associated
with domestic violence against women.

Dowry payments force parents to
disinvest in female human capital.

Brideprices hinder the bargaining
power of women.

Marriage payments are large enough to
impoverish parents.

Initial processes of development
inevitably cause marriage payments to evolve to the detriment of
women.

Author's main message

Marriage payments evolve in response to economic
forces, and the initial processes of development inevitably cause marriage
payments to act to the detriment of women. Such payments should be
prohibited, and parents should be encouraged to invest instead in their
daughters’ human capital. Governments should promote programs to empower
women through female education subsidies and targeted employment and
micro-credit schemes. Indeed, marriage payments will disappear once women
reap more equal economic opportunities relative to men.